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EA Q2 FY14 Results: Simpsons $100M revenue, raises earnings expectations

N

Nirolak

Mrgrgr
I'll update this when they have the call and actually say something interesting.

EA said:
Electronic Arts Reports Q2 FY14 Financial Results
Q2 Non-GAAP Net Revenue and EPS Results Exceed Guidance
Fiscal Year 2014 Non-GAAP EPS Guidance Raised to $1.25 Per Share

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today announced preliminary financial results for its second fiscal quarter ended September 30, 2013.

“EA’s strong second quarter was driven by great title launches, continued digital growth, and financial discipline,” said Chief Executive Officer Andrew Wilson. “While we have made good progress in the first half of the year, we remain focused on executing our FY14 plan and delivering a full slate of amazing games and services to players on current and next-generation consoles, mobile, and PC.”

“We exceeded our revenue and EPS guidance in the second quarter through a combination of delivering on revenue, and managing our costs,” said Chief Financial Officer Blake Jorgensen. “We are reaffirming our annual non-GAAP net revenue guidance of $4 billion, and raising our non-GAAP EPS guidance from $1.20 to $1.25 per share.”

This release, along with ongoing updates regarding EA’s business, is available on EA’s blog at http://ea.com/news.

Selected Operating Highlights and Metrics:

*On a non-GAAP basis

EA raised its fiscal year earnings per share guidance from $1.20 to $1.25 per share*.
Trailing twelve-month non-GAAP digital net revenue was up 22% versus the prior year to a record $1.75 billion*.
On a year-to-date basis, EA SPORTS™ NCAA® Football Ultimate Team, Madden NFL Ultimate Team, NHL® Hockey Ultimate Team, and FIFA Ultimate Team each grew year over year and drove digital net revenue* growth.
EA’s mobile and handheld non-GAAP digital net revenue generated $105 million* in Q2 FY14, a 19% year-over-year increase over Q2 FY13.
The Simpsons™: Tapped Out eclipsed $100 million* in life-to-date digital net revenue, and has been in the top 20 iPhone grossing games in the U.S. for all but 12 days, since launching in August 2012.
Plants vs. Zombies™ 2 has been installed over 25 million times on iOS devices since launching in August 2013, more than the lifetime total of the original Plants vs. Zombies.
Real Racing™ 3 continued its revenue growth* since launching in February 2013, has been downloaded over 70 million times, and is currently averaging 18 million monthly active users.
FIFA digital net revenue generated over $145 million* in the first half of fiscal 14, an increase of over 25% compared to the first half of fiscal 13.

Q2 Financial Highlights:

For the quarter, non-GAAP net revenue of $1,040 million was above our guidance of $975 million. Non-GAAP diluted earnings per share of $0.33 was above our guidance of $0.12.

GAAP Loss: $273 million
Non-GAAP Profit: $105 million
Click to expand...
Source: http://news.ea.com/press-release/company-news/electronic-arts-reports-q2-fy14-financial-results
 
F

Foshy

Member
Seems like FIFA and Madden underperforming compared to last year didn't hurt them that much as they have mobile games to fall back on.
 
M

Mario007

Member
The Simpsons™: Tapped Out eclipsed $100 million* in life-to-date digital net revenue, and has been in the top 20 iPhone grossing games in the U.S. for all but 12 days, since launching in August 2012.
Plants vs. Zombies™ 2 has been installed over 25 million times on iOS devices since launching in August 2013, more than the lifetime total of the original Plants vs. Zombies.
Real Racing™ 3 continued its revenue growth* since launching in February 2013, has been downloaded over 70 million times, and is currently averaging 18 million monthly active users.
Click to expand...

I think this is quite interesting to read. Basically between the lines it seems like The Simpsons is the only one making them real money. PvZ2 is free to play as opposed to PvZ so it being installed on more devices make sense. No revenue given from that game and from RR3 show that they must not be making as much money as EA would be happy with. I know my dad has RR3 downloaded and plays it regularly but would never spent a cent on it.

EDIT: Also 105 million profit on all things mobile seems rather small doesn't it? I mean many of EA console franchises would easily make that singlehandedly. Then again the growth year on year is encouraging.
 
L

liquidtmd

Banned
Tripon said:
People are getting wise to free to play, it seems. You do not need to pay to win.
Click to expand...

Yep. Execs probably thought - enough people won't actually enjoy grinding, well make our fortunes from them.

My wife is a perfect casual gamer, she enjoys PVZ2 but has no intention to spend cash on it - and she has a good income.

Coning soon - pay to press A to win
 
M

Meier

Member
Simpsons Tapped Out has been out for over a year and a half now and is just topping $100m. Certainly a decent amount of money, but when you hear stories about Puzzles and Dragons making that in a month, it seems like the Western market is just not as willing to spend in mass as they are in Asia.

They've created a lot of content and probably have a pretty large support staff for Simpsons as well so I'm curious what there actual profit is.
 
T

ToraShiro

NISA
Mario007 said:
I think this is quite interesting to read. Basically between the lines it seems like The Simpsons is the only one making them real money.
Click to expand...

My thoughts exactly. Simpsons presented in $, other (free to download) games are presented in total downloads.
 
N

Nirolak

Mrgrgr
Crawl said:
I'm confused did they actually make money or lose money?
Click to expand...

By standard account rules they lost money, but they defer all their money due to multiplayer.

Basically they make money in the quarters they release nothing and lose money in the ones they release games since their marketing costs are instantaneous and their game profits are realized over 18-24 months.
 
S

SmokyDave

Member
I really like Tapped Out and I've been playing it for over a year. I think they're kinda shooting themselves in the foot with the constant updates though, I don't feel the need to buy much premium stuff because there's so much base content to work through. I have spent probably £30-£50 on it over the last year or so and yet if I worked that out, it'd probably be less than pence per hour. They're a little too generous to see huge F2P monies, same with PvZ.

I hope nobody from EA reads this post.
 
T

Tripon

Member
TouchMyBox said:
That's a pretty fancy way of telling people that you've lost money.
Click to expand...

Seems like working for EA is a roller coaster. They're constantly closing unprofitable studios, canceling games, and trying to make it all of their revenue on AAA and free to play games.
 
S

SmokyDave

Member
ElTopo said:
Remember folks who you have to blame when EA changes shit.
Click to expand...
Sorry man, just calling it like I see it. FWIW I think Puzzle and Dragon is pretty generous too, and that fucker makes a fortune. Maybe that's the key! Maybe EA need to be more generous!

/coveringtracks
 
T

Tripon

Member
Meier said:
Simpsons Tapped Out has been out for over a year and a half now and is just topping $100m. Certainly a decent amount of money, but when you hear stories about Puzzles and Dragons making that in a month, it seems like the Western market is just not as willing to spend in mass as they are in Asia.

They've created a lot of content and probably have a pretty large support staff for Simpsons as well so I'm curious what there actual profit is.
Click to expand...

That, and the Simpsons is a licensed game. No way the royalties on that property is a small portion of the revenue generated.

Gross profit that EA keeps has to be way lower than revenue on Tapped Out.
 
K

krae_man

Member
SmokyDave said:
I really like Tapped Out and I've been playing it for over a year. I think they're kinda shooting themselves in the foot with the constant updates though, I don't feel the need to buy much premium stuff because there's so much base content to work through. I have spent probably £30-£50 on it over the last year or so and yet if I worked that out, it'd probably be less than pence per hour. They're a little too generous to see huge F2P monies, same with PvZ.

I hope nobody from EA reads this post.
Click to expand...

I haven't spent anything yet. I'm waiting until I have purchased everything I can in game free before I decide what I want to spend doughnuts on. I just have the Popsicle Stick Skyscraper, the Giant Magnifying Glass and the Worlds Largest Cubic Zirconia to go.

Then I'll wait for a used doughnut sale and throw $10-$20 there way and buy me some stuff. They have been pretty generous with the doughnuts this Halloween as well. I'm almost at 100 doughnuts and since I started playing and I probably wasted about 30 stupidly up until this point. I sped some stuff up early on and bought a budda by mistake thinking it was also a decorative item to put on my map on top of the chance for something cool.
 
T

TAJ

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
krae_man said:
They have been pretty generous with the doughnuts this Halloween as well.
Click to expand...

It's the opposite from my perspective. They went back to raising the exp required to hit the bonus level 20% every time you fill your meter. I was cranking out an average of just over 4 donuts a day from bonus levels at the time the Halloween update hit. I'm not even bothering with them right now.
Meanwhile, the donuts from Halloween nowhere near make up for the losses.
 
S

Saty

Member
Also, anyone else surprised by PC leading the revenue split? I sort of expect to have one of the consoles above when the quarter includes big console titles such as Madden and FIFA.
 
K

krae_man

Member
TAJ said:
It's the opposite from my perspective. They went back to raising the exp required to hit the bonus level 20% every time you fill your meter. I was cranking out an average of just over 4 donuts a day from bonus levels at the time the Halloween update hit. I'm not even bothering with them right now.
Meanwhile, the donuts from Halloween nowhere near make up for the losses.
Click to expand...

I don't know about you, but I went from needing 440k to get my next doughnut box to only needing 220k.

That plus all the doughnuts form popping ghosts, and the 16 from the trivia and burns confessing have added up.

Fake edit: nevermind, that was with the level 36 update, not the Halloween update. I do remember the XP required per level being static before Halloween.

How were you leveling up twice per day? Do you have a massive amount of XP multipliers or something?
 
T

TAJ

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
krae_man said:
I don't know about you, but I went from needing 440k to get my next doughnut box to only needing 220k.

That plus all the doughnuts form popping ghosts, and the 16 from the trivia and burns confessing have added up.

Fake edit: nevermind, that was with the level 36 update, not the Halloween update. I do remember the XP required per level being static before Halloween.

How the hell were you leveling up twice per day?
Click to expand...

The top two thirds of my town is immaculately designed. The bottom third is solid house farm. I bought all of the land within about six weeks of playing. (early on the farm was the majority of the town) I've used the donuts from my farm to buy a bunch of bonus % items. I have around a +125% bonus, plus 4.5% from star rating.The farm makes massive amounts of money, (and large amounts of exp) which I use to buy weather stations. Building the stations gives more exp. Then I sell the weather stations and use the money to buy more weather stations.
 
K

krae_man

Member
Ah, I've herd of the Weather station farming. I didn't realize you could level up that quickly with it.

I have a blue house farm that stretches two square all the way across the map and I make about 105k/day from it. I'm assuming you have something 4-5 times that?
 
T

TAJ

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
krae_man said:
Ah, I've herd of the Weather station farming. I didn't realize you could level up that quickly with it.

I have a blue house farm that stretches two square all the way across the map and I make about 105k/day from it. I'm assuming you have something 4-5 times that?
Click to expand...

It's exactly five squares right now. I cut back somewhat near the beginning of the month. I may get rid of it entirely soon.
 
T

Turin Turambar

Member
Meier said:
Simpsons Tapped Out has been out for over a year and a half now and is just topping $100m. Certainly a decent amount of money, but when you hear stories about Puzzles and Dragons making that in a month, it seems like the Western market is just not as willing to spend in mass as they are in Asia.

They've created a lot of content and probably have a pretty large support staff for Simpsons as well so I'm curious what there actual profit is.
Click to expand...

Puzzles & Dragons is more the exception, not the norm, even in Asia.
 
L

Log4Girlz

Member
SmokyDave said:
I really like Tapped Out and I've been playing it for over a year. I think they're kinda shooting themselves in the foot with the constant updates though, I don't feel the need to buy much premium stuff because there's so much base content to work through. I have spent probably £30-£50 on it over the last year or so and yet if I worked that out, it'd probably be less than pence per hour. They're a little too generous to see huge F2P monies, same with PvZ.

I hope nobody from EA reads this post.
Click to expand...

I just emailed them this post.
 
D

DXB-KNIGHT

Member
I have been playing Simpsons for over a year now and haven't spent on cent on the game, my Springfield is missing out on a lot of stuff but I don't care, it's a free game afterall.
 
K

kudoboi

Member
PC - 39.4%
Xbox 360 - 24%
PlayStation 3 - 18.8%
Mobile - 10.8%
'Other' - 3.6%
Wii - 1.3%
PlayStation handhelds - 1.0%
Nintendo handhelds - 0.7%
PlayStation 2 - 0.3%
 
X

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
DXB-KNIGHT said:
I have been playing Simpsons for over a year now and haven't spent on cent on the game, my Springfield is missing out on a lot of stuff but I don't care, it's a free game afterall.
Click to expand...

I've been playing since January or so and haven't spent any money either, but still managed to build a decent town even without all the premium stuff. Without any building farming setup nonsense either.
 
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